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When the Soviet Union collapsed and a slew of newly independent
republics began looking for financing to operate a capitalist economy,
a foreign banker was heard to comment, Governments come and go. Money
remains. If money is a universal constant, it may explain why, as
their country moves into a global capitalist economy, Russian
accountants have much in common with their counterparts in the United
States.

From Moscow to Washington In September, the Maryland Association of CPAs played host to a
delegation of 11 Russian accountants eager to find out what the U.S.
professions concerns and interests were and to compare notes with
their overseas counterparts. The visit included a trip to the AICPAs
Washington office where the staff explained the CPAs role in the U.S.
economy and listened to how accountants operate in Russia.

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All the visitors worked for what was translated as audit companies,
equivalent to CPA firms. They seemed bewildered that the U.S. has 54
licensing jurisdictions: Russian accountants all are certified through
a central ministry of finance. However, Russian firms must be licensed
for some of the industries for which they act as auditors. Investment
companies are fairly new in Russia and only a few firms have licenses
to audit them, giving this small group a virtual monopoly.

The delegation members, like many U.S. CPAs today, wanted to know
more about IASC standards and their application. One visitor explained
that there was a lot of interest in adopting the GAAP of various
Western European countries, which can differ from both U.S. and IASC
standards. Griping about the tax authorities is a common thread there
as well as here. We are not popular with the government tax
authorities, said one accountant through an interpreter. They feel we
work too hard to help people avoid paying their fair share. They want
everyone to pay more than they should. Late-payment fines are very
high, they explained, and are a key government profit center.

Marketing, of course, is another capitalist reality. We have to
spend lots of time and energy looking for new clients, said one
accountant. Its especially hard for a new firm.

100 years of CPE M. Christine Stewart, president of the Maryland society and head
of her own consulting firm, told the Journal that the U.S.
profession has been moving to its present role as business advisers
for much of the century. Her Russian guests were studying hard to
bring their profession up to speed much more quickly. As the Russians
met with CPAs around the state, they were stunned by the hourly rates
many CPAs command, which are very high compared with Russian
standards, said Stewart. Nevertheless, the Russians are not entering
this economy with decades of existing perceptions about what the
profession has been. They seem very eager to make the move to provide
complete business advisory services. They readily bought into our
Vision Process.

The Center for Citizen Initiatives, a private organization receiving
support from the U.S. State Department, sponsored the trip through its
Productivity Enhancement Program, which provides training to Russian
business people.